What are the implications of eBay/PayPal split for 1. eBay shareholders 2. eBay employees 3. PayPal employees?

John Deltuvia

John Deltuvia, Conception de projet / Analyste / Programmeur, Maître Reiki, Massothérapeute NJ Lic # 18KT0054100

Répondu il y a 218w

There are many different opinions negative and positive. eBay and Carl Icahn came to an agreement this past spring that a split would be negative overall, and Mr. Icahn stopped pushing for a split. On the other hand, contrarian analyst Paul Boland is of the opinion that a split would be positive. If they did split, however, "eBay"s future" would, for shareholders, become "eBay"s future" as well as "PayPal"s" future, unless the PayPal unit were sold rather than spun off with shareholders receiving shares in both companies.

Chen Liu

Chen Liu, learning to trade

Répondu il y a 170w

I have a follow-up question to this.

It has been announced that Ebay shareholders will receive one PayPal share for each Ebay share they own as of July 8 COB. Why haven"t we seen a dip in Ebay share price since then to account for the new PayPal shares? It almost looks like an arbitrage opportunity for Ebay shareholders to sell Ebay now (after record date) and still get 1-for-1 PayPal shares once it starts trading next week.

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